MSE News: Over-75s' nest eggs 'shrinking'

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Former_MSE_Helen
Former_MSE_Helen Posts: 2,382 Forumite
in Pensions, annuities & retirement planning
"The long-term retired are having to 'knock lumps' out of their nest eggs just to get by, a new report has found..."
Read the full story:
Over-75s' nest eggs 'shrinking'


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  • Anthorn
    Anthorn Posts: 4,362 Forumite
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    So to recap: The over 55s have increasing savings while the over 75's nest eggs are being reduced.

    I really don't see why this is a problem for anyone except the banks and funds who like people to leave their money in there and not touch it.

    The over-55s are building up their nest eggs so their savings are increasing and the over-75s are spending their's so their savings are reducing. Isn't that what the nest egg is there for? To see people through retirement? Some of us have the idea that we must leave something when we die. Taking myself as an example, quite frankly if I left my son an inheritance he would only squander it and I can happily squander it myself before I die.

    Lastly, commenting on the section on credit card debts, it's not clear whether those with the debts are also those additionally with a nest egg. I think not. Older people are no different to younger people in that they pay the same prices and have the same if not greater needs. Faced with the rising cost of living and income not keeping up with inflation they have two basic choices: Tighten their belt or live beyond their means. When credit is available they live beyond their means and when credit is exhausted they tighten their belts because then there is no alternative.
  • jamesd
    jamesd Posts: 26,103 Forumite
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    Here's the press release about the Aviva Real Retirement Report on which this story is based and the full Aviva Real Retirement Report Summer - July 2012.
  • margaretclare
    margaretclare Posts: 10,789 Forumite
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    DH and I should come into that category, but our 'nest-eggs' are not shrinking but growing in a S&S ISA.
    [FONT=Times New Roman, serif]Æ[/FONT]r ic wisdom funde, [FONT=Times New Roman, serif]æ[/FONT]r wear[FONT=Times New Roman, serif]ð[/FONT] ic eald.
    Before I found wisdom, I became old.
  • FATBALLZ
    FATBALLZ Posts: 5,146 Forumite
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    Agree with #2, of course their nest eggs are reducing and so they bloody well should be. That's why you save for retirement - so you can spend you money in retirement. There's a sickness in this country among many old people causing them to not only expect to hold onto their retirement savings in full during retirement, but expect to live comfortably off the back of the work of others.
  • Narc
    Narc Posts: 422 Forumite
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    Isn't that sort of the point of saving for retirement? Average life expectancy is 80 years.
  • Pincher
    Pincher Posts: 6,552 Forumite
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    £22.5k down to £13k in two years, means zero by 2014.
    Fine if you know you will die in 2014.
    I would worry if I didn't have Alzheimers.

    I wonder how much you can get by signing a contract to permit your cadaver being used for disection practice etc. Saves the price of a funeral. Since it's a futures contract, should it be traded on Liffe?
  • jamesd
    jamesd Posts: 26,103 Forumite
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    Narc wrote: »
    Average life expectancy is 80 years.
    Not at age 65 it isn't. Then it's 88 or so years.
  • oldvicar
    oldvicar Posts: 1,088 Forumite
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    Recent studies have suggested people have been using their savings to pay down their debt rather than take out new loans amid uncertainty over the economy and poor returns on savings following three years of record low interest rates

    What a fine idea.
  • torbrex
    torbrex Posts: 71,340 Forumite
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    I aim to have no debt when I retire and then use the nest egg that I am building now to fund all sorts of extras, holidays and luxuries that no amount of pension will be able to give me otherwise.

    I have no debt now (52) so I am well on target to retire early rather than late and once my savings pot has reached the target that I have set, I will be off like a shot to get as much in as I can while I am still able :D
  • izools
    izools Posts: 7,513 Forumite
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    edited 12 July 2012 at 7:25AM
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    Well I've found something even better than an NHS Pension.

    I cancelled mine and requested my contributions to date be paid back to me and am purchasing a buy to let property. With the monthly surplus from that (less income tax) and the money I otherwise would be putting in to the NHS pension, I'm saving, and am able to increase my portfolio with one BTL property every three to five years.

    I will continue to do this and should be able to live off the income the properties generate by the time I'm 40 (as I should have four to six properties by then) and sell them when I'm older if I want / need to.

    It's all rather simple really, one just needs the inclination and accumen. Good credit isn't a pre-requisite especially with the BTL products Birming Midshires offer :o
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